BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI went nowhere yesterday by just closing a shade in the positive territory with the lack of leads which leaves market conditions still on the dull side.
However, for most of the day, the key index was in the negative territory as selling was still dominating trades until a late lift at the end of the day.
Away from the heavyweights, conditions were also mixed as evidenced by the near equal market breadth with traded volumes remaining moderate.
We continue to think that the overall market conditions are indifferent, much of it due to the lack of available domestic catalysts to bolster sentiments.
At the same time, the rising local COVID-19 cases are also starting to be of concern as it could once again cause consternation to the economic recovery prospects, particularly if another lockdown is necessary to contain the outbreak, thus posing as a setback to 2Q 2021’s corporate earnings recovery.
Under the prevailing market environment, we think that the cautious undertone could prevail for longer and may leave the equity market to continue drifting until a new course is set.
While most stocks may continue to dither, oil and gas (O&G) stocks may see renewed interest amid the rising oil prices.
Nevertheless, we still think the key index could remain close to the psychological 1,600 points level on selected institutional backing while the other supports are pegged at 1,590 and 1,580 points respectively.
The hurdles, on the other hand, remain at 1,610 and 1,620 points respectively.
Malacca Securities Research
The FBM KLCI finished on a flattish note as buying interest interspersed with profit-taking activities on selected heavyweights.
With COVID-19 infections in the country showing an upward trend, overall market sentiment may remain jittery.
Despite that, the surged in crude oil prices amid the optimism about returning demand after the COVID-19 lockdowns may provide some alleviation, particularly to the O&G players.
The FBM KLCI snapped two days losing streak and ended almost flat after erasing most of the intraday losses as the key index formed a hammer candle.
Technical indicators turned mixed as the MACD Histogram has extended a red bar, while the RSI was hovering above the 50 level.
Should the key index surpass the 1,600 level, it may trade higher with resistance pegged along 1,615-1,635, while the support level is set at 1,575. – April 15, 2021
